On 17 September 2015, the Australian Energy Market Commission (AEMC) began consultation on a rule change request from Snowy Hydro.
Snowy Hydro's proposed rule change seeks to amend registered participants’ obligation to comply with dispatch instructions issued by the Australian Energy Market Operator (unless to do so would, in the participant’s reasonable opinion, be a hazard to public safety or materially risk damaging equipment). Snowy Hydro proposed a two limb test which requires participants to use reasonable endeavours to comply and incorporates AEMO’s non-conformance process (as provided for by clause 3.8.23).
On 23 October 2015 we provided a submission in response to the consultation paper. We oppose the rule change proposal and reiterate our stated expectation that participants comply with the dispatch instructions as set out under 4.9.8(a).
On 11 February 2016 we provided a submission in support of the AEMC's draft determination. In the draft determination, the AEMC declined to make any changes to the current obligation to comply with dispatch instructions. Our submission discussed our approach to compliance and enforcement in this area and the importance of the current obligation to system security and efficient market outcomes.